PHMSA increases Non-Compliance Violations

PHMSA is publishing an updated statement of policy revising the list of frequently cited violations (Part 107 Subpart D) and modifying individual baseline assessments. PHMSA has also added assigned penalties instead of penalty ranges, where appropriate to reflect safety risks such as packing group. PHMSA notes that “in order to remain consistent with MAP-21 increase to the maximum civil penalties, as well as make appropriate adjustments for inflation, PHMSA reviewed the entire list of baseline penalties and generally increased them.” A cursory review indicates that the baseline assessment information is more descriptive and some penalties have increased substantially. For example, under B. Training Requirements the baseline assessment has increased from $700 each area (more than 10 hazmat employees) to $1500 for each area. PHMSA is also eliminating many baseline ranges (e.g. $3,000 to $6,000) and replacing them with specific baselines (e.g. $6,000 for PGI, $4,500 for PGII and $3,000 for PGIII). The maximum civil penalty has been increased by 36% from $55,000 to $75,000 for a knowing violation and by 59% (from $110,000 to $175,000) for violations resulting in serious harm. PHMSA has also increased penalties to go above the baseline based on previous violations.